Category: Gold

Bloomberg/Nishant Kumar/3-31-2022

“‘This combination of high inflation, tight labour markets, and uncertain inflation expectations introduces the prospect of a 1970’s style wage-price spiral which proved very costly to reverse during the Volcker Era,’ according to the note to shareholders of a listed fund, which it manages.”

USAGOLD  note: That wage-price spiral was finally waylaid when the Fed pushed interest rates over the inflation rate, but it took more than 10 years to muster the political will to get the job done. The current inflation, we should keep in mind, began less than a year ago, and the Fed, at this juncture, has no intentions of applying the kind of medicine Volcker did in the early 1980s.

United States Inflation Rate
Source: tradingeconomics.com

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FoxNews/Steve Forbes/3-31-2022

“Unfortunately, our central bank and all too many economists have long embraced the idea that manipulating interest rates can keep the economy running smoothly with inflation clocking in at a low rate of 2% or less. It’s hubris of the highest order to think that a handful of people in Washington can guide an economy where 300 million people a day make billions of buy and sell decisions.”

USAGOLD note: Forbes, a former presidential candidate and publisher of Forbes magazine, leaves nothing in the bag with this shot across the Fed’s bow. He says the central bank “has created a potentially catastrophic time bomb” through its reverse repo program and the money creation policy that goes along with it.

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